Are Chinese Stocks Contagious?

China’s soaring stock market spun into a nosedive (China Daily) May 30, dropping nearly 7 percent on news that the government will triple a tax on stock trading. Stocks stabilized (FT) the next day, but the plunge rattled investors nonetheless. An official from China’s finance ministry said the tax hike is aimed at promoting the healthy development of China’s economy. He didn’t use the word “bubble,” but his meaning was implicit enough.